ITF

20 5. Summary of significant accoun ng policies (con nued) d) Intangible assets – research and development Development expenditure that is directly a ributable to the design and tes ng of iden fiable and unique so ware products controlled by the group is recognised in intangible assets when: it is technically feasible to complete the so ware so that it will be available for use; management intends to complete the so ware and use or sell it; there is an ability to use or sell the so ware; it can be demonstrated how the so ware will generate probable future economic benefits; adequate technical, financial and other resources to complete the development and to use or sell the so ware are available; and the expenditure a ributable to the so ware during its development can be reliably measured. Directly a ributable costs that are capitalised as part of the product include employee costs. Capitalised development costs are recorded as intangible assets and amor sed from the point at which the asset is ready for use. The group amor ses intangible assets with a limited useful life using the straight-line method over 3 years. Research expenditure and development expenditure that do not meet the criteria above are recognised as an expense. e) Property, plant and equipment Property, plant and equipment are stated at cost, less accumulated deprecia on. The cost of the tangible fixed assets is wri en off in equal instalments over their useful lives as follows: f) Inventories Inventories are valued at the lower of cost and net realisable value. Where inventories are held for distribu on for no considera on such as development equipment, the carrying amount is held in inventory at cost and is recognised as an expense on distribu on. g) Investments and financial assets held at fair value through profit or loss (FVPL) Investments are included in the Statement of Financial Posi on on trade-date, the date on which the group commits to purchase or sell the asset. Investments are recorded at fair value, determined by reference to quoted market prices at the balance sheet date (classified as level 1 in the fair value hierarchy), with changes recognised directly in the income and expenditure statement. Transac on costs of financial assets carried at FVPL are expensed in profit or loss. h) Trade and other receivables Trade and other receivables are recognised ini ally at fair value. Subsequent to ini al recogni on they are measured at amor sed cost using the effec ve interest method, less any impairment losses. i) Impairment of financial assets Impairment of financial assets held at FVPL is not considered. For impairment of trade receivables, since 1 January 2018 the group applies the simplified approach permi ed by IFRS 9, which requires expected life me losses to be recognised from ini al recogni on of the receivables. See note 37 (b) for further details. j) Trade and other payables Trade and other payables are recognised ini ally at fair value. Subsequent to ini al recogni on they are measured at amor sed cost using the effec ve interest method. k) Financial income and expenses Financial income and expenses represent bank interest received and paid by the group, respec vely. l) Taxa on The taxa on charge is based on the result for the year and irrecoverable withholding tax, and takes into account taxa on deferred because of ming differences between the treatment for taxa on and accoun ng purposes. NOTES (CONTINUED, FORMING PART OF THE FINANCIAL STATEMENTS) Leasehold buildings Over the remaining period of the lease or asset life (if shorter) Computers and databases 3 years Furniture and equipment, technical equipment 4 years Notes

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